estimates of the marginal, ordinary tax rates of investors, obtained from responses to a survey about their incomes, were found to be only slightly (negatively) correlated with the debt ratios of the firms whose stock they held. KLM's failure to observe a strong negative correlation raises doubts concerning the existence of financial leverage clienteles. The purpose of our study is to provide new evidence concerning financial leverage clienteles based on a different estimator of tax rates of shareholders. The evidence indicates that personal tax rates tend to be highly negatively correlated with financial leverage, providing support for the existence of financial leverage clienteles. In the following section, we discuss the Miller and KLM models of financial leverage clienteles. Section II contains a description of the procedures used for estimating personal tax rates and a description of the data used to test the hypothesis of leverage clienteles. Results and implications of the tests are presented in Section III, and Section IV contains the summary.